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Despite economic uncertainty caused by the COVID-19 pandemic and systemic barriers, Black and Latino entrepreneurs saw unprecedented business performance over the past 12 months, according to a survey produced by Ernst & Young LLP (EY US) titled The Entrepreneur’s Paradox: How Black and Latino Entrepreneurs Are Balancing Growth and Uncertainty. This research reveals that while nearly nine out of 10 established Black and Latino entrepreneurs met or exceeded their performance expectations this past year, nearly all are concerned that it was driven by a short-term boost in attention.

“Black and Latino entrepreneurs are an economic force, and our research underscores their business resiliency and output,” said Lee Henderson, Americas EY Private Leader, and Executive Sponsor, EY Entrepreneurs Access Network. “But more action is needed from consumers, investors and the entire business community to address disparities caused by lack of access to capital, mentors and networks, and to sustainably ensure the long-term economic growth of minority business owners.”

The survey was commissioned by the EY Entrepreneurs Access Network, an immersive mentoring program and business accelerator for Black and Latino entrepreneurs. This research set out to understand the unique experiences of these leaders during the COVID-19 pandemic and in the wake of a national reckoning on racism and discrimination. More than 1,000 established Black and Latino entrepreneurs, who lead businesses across industries and produce annual revenues from $2m to $25m, were asked to reflect on how the current social, political and economic environment has impacted them, their businesses and their outlook.

Key findings include:

• Strong and sustained performance: Despite the disruptions of COVID-19, 88% met or exceeded performance expectations, 73% experienced moderate to significant business growth, and 77% anticipate additional growth in 2022 compared to 2021.
• Impacts of America’s racial reckoning: 88% say that the strong focus on racial equity has increased attention for their businesses, and 99% say this allowed them to invest in their businesses in ways they might not have otherwise by innovating products, improving infrastructure, and hiring.
• Concerns about waning attention: Among those who experienced increased attention for their business, nearly all (93%) worry that it will provide only a short-term lift, and nearly half (48%) say a pullback on momentum would make it difficult to retain existing employees.

“Our research shows that Black and Latino entrepreneurs are rightly concerned that their businesses might be negatively impacted as focus on them fades,” said Nit Reeder, EY Entrepreneurs Access Network Program Director. “The greatest equalizer of wealth disparity is business ownership. We must maintain strong support of minority entrepreneurs to make lasting change.”

Additionally, the survey highlights how Black and Latino entrepreneurs engage with mentors and professional networks. Of those surveyed, 56% say a network of trusted vendors and partners is key to business growth, and 53% identify access to a mentor as a similarly valuable resource. This underscores the impact of the EY Entrepreneurs Access Network model, which not only welcomes participants into an elite network of entrepreneurs, investors, advisors and other business leaders, but also provides each participant with a dedicated EY executive as their personal mentor.

“The Entrepreneurs Access Network has been invaluable,” said Maurice Brewster, Founder & Chief Executive Officer, Mosaic Global Transportation. “My EY mentor facilitated connections with venture capital firms and has even helped me launch a brand-new electric vehicle business. Although I’ve been a CEO for nearly 20 years, this program gave me the opportunity to work on my business, not just in it – with real results.”

The EY Entrepreneurs Access Network currently includes 120 Black and Latino entrepreneurs from across the US and connects participants with resources, networks and one-on-one mentoring to close long-standing disparity gaps. The next cohort of entrepreneurs for this program will be announced in December 2021.

The EY Black and Latino Entrepreneurs Survey was conducted by Wakefield Research among 1,000 established Black and Latino entrepreneurs from organizations with revenue in the $2m to $25m range. The survey was fielded using an email invitation and an online survey between August 3 and August 18, 2021.

What kind of House Do you Want to Live in?

When shopping for real estate you absolutely have to count on location, location, location. Where you are located is going to provide resale value especially if your property is maintained well. Here are a few reasons why you want to look at your website like real estate

You absolutely don’t ever wanna have the best house on the block and you don’t want to live in a neighborhood that doesn’t have positive returns. High crime areas where crimes like theft take place (stolen content) are gonna have very little Return on your investment value

Here are a few tips to make sure that your website is up-to-par and treated like The valuable online real estate that it is.

No Free Tenants

Keep in mind it’s a goal of any site is that you want to build something that you can eventually sell. You don’t want to build something that you’re going to have to work off for the rest of your life. You want to get into the building selling game that’s how you’re going to create a fast wealth. I wish I had known this a few years ago when I go to a site that was tied to my name. When is tied to your name is not very attractive to potential buyers who want to get something or they can just take over.I would also suggest that what you saw the first night that you look at sites like…And by the site is already established a set of China start from scratch worry for a scratch that I take you a lot of time whereas of buying a site’s already established can save you a lot of time make sure you do your due diligence buying a site is just like buying real estate you want to make sure but it has good sturdy walls of the electricity is working you never want to buy something with somebody has debt or tax issues that’s tied to the site you must make sure that your contract you have stipulations that eliminate your responsibility for any of their past that’s a whole Nother storyBoy do we cross that bridge. Good luck

 Usher’s New Look (UNL), one of the nation’s leading advocacy and educational organizations for young people around the world, today announced it received a $500,000 grant from Truist Foundation. The grant will support UNL’s high school leadership program, including its financial literacy programs, and marks a significant milestone for the organization, having received a total of $1.5 million from Truist Foundation in five years.

A nonprofit foundation launched in 1999 by performing artist and philanthropist Usher Raymond IV, UNL has since served more than 50,000 youth by offering support and access through programs addressing education, professional development, mental health, wellness and more.

“Breaking the cycle of poverty and debt is tantamount to the future success of young people, particularly in these challenging times where we see that there are currently 16 million children living in poverty today,” says Careshia Moore, president and CEO of Usher’s New Look.

“This is, therefore, a proud moment for Usher’s New Look, and we are so very grateful to Truist Foundation for this transformational grant that will enable us to further our mission and touch the lives of hundreds of young people, helping them prepare for their futures while uplifting themselves and their communities at the same time.”

“Truist Foundation is committed to helping Usher’s New Look advance its mission by empowering young people with access to financial wellness to help them make choices throughout their lives,” said Lynette Bell, president of Truist Foundation.

“Ushers New Look shares in our purpose to inspire and build better lives and communities. Their dedication and proven track record in guiding and developing the talent and skills of young people is unparalleled.”

The goal of UNL’s financial literacy programming is to end the intergenerational cycles of poverty by empowering youth to be financially capable of understanding and applying healthy money habits. Budgeting, credit and debt are all issues reaching crisis proportions, with young people affected the most.

UNL’s high school program includes real-time workshops and how-to sessions, covering topics such as talent exploration, preparing for postsecondary education, workforce development, servant leadership,  entrepreneurship, budgeting, credit and debt, savings, investing,  financial health and skill development.

Yesterday, I was in the process of listening to Tavis Smiley’s Station KBLA in Los Angeles for a project. I thought I would just be listening for a few minutes but I ended up listening to an entire show with Isaiah Washington.

I was pleasantly surprised at how well put together the station is in programs how tight the breaks are and how professional it sounds.

This is not to say that I would not expect this from Tavis but this is not what I’m used to when it comes to talk radio. I heard a lot of insight instead of moaning and groaning and I also heard questions targeting solutions to problems. I greatly enjoyed the promos for the station as well.

Tavis’ timing is impeccable. Commercial radio is in dire need of something new in ways to reach listeners who have a plethora of digital options today. This could literally put AM radio back in the spotlight with all the apps available today. Kudos to the staff

In this segment (below), Washington talks about his unjust treatment in Hollywood and how he was essentially blackballed by the powers that be after an unfortunate incident on the set of Grey’s Anatomy where he was accused of doing something he didn’t do.

Grey’s Anatomy is now getting a lot of exposure for being a toxic work environment. Isaiah breaks it down. While I was listening to the show, I could not think of any other outlet that would’ve given him an opportunity to tell his side of the story which is why I station like KBLA is so needed.

I heard great commercial breaks and a good flow during the entire hour. I invite you to listen as well and let me know what you think.

The Black Shopping Channel has signed committed contractual carriage agreements that will land the first minority owned TV Shopping Network (BSC) in 80 million + homes that include distribution on Comcast/Xfinity, Dish Network, Charter Spectrum, DirectTV as well as platforms including Roku and Amazon Fire TV, streaming platforms and over the air/broadcast markets including antenna TV. 

Additionally, the network will also be accessible through the web, phones, devices, XBOX, vMVPDs, Smart TVs and more. 

The Black Shopping Channel will showcase relevant and contemporary brands and items across numerous product categories with a relevant appeal along with featuring urban small business owners who need marketing and to sell their products through BSC’s TV Network. BSC will also have celebrity TV Shows to promote their products and brands to their fan base. The launch is anticipated by February and will reflect contemporary Black perspective and culture.

This is a major breakthrough for minority owned businesses that will get an opportunity to showcase their products on TV to over 80 million households, creating the opportunity for vendors to become future millionaires while major corporations reach their target consumer audience through the TV Network. Web/app/streaming coverage will also be included to successfully sell their products to their targeted audience. 

Vendo

“This network is long overdue, and the timing was important to continue to build momentum for our community and to support black-owned businesses,” states Cleveland Gary, BSC President. “In addition to making the network available and accessible across the US, BSC will implement community outreach and support initiatives.”

Nielsen continues to dedicate itself to telling the story of the power of Black audiences, their diversity, and the representation of the collective Black community. According to “Seeing and Believing: Meeting Black audience demand for representation that matters,” the newest report in Nielsen’s Diverse Intelligence Series, the U.S. Black population has a complex and powerful legacy that continues to shape countries and cultures around the world. Yet, when it comes to representation in media, the complexity that creates the richness of their experience is often lost, and when present, undervalued.

As Black Americans continue to video stream, listen to radio and podcasts, as well as buy Black, they continue to lead the conversation and stay connected through social media — having an unprecedented impact on brands and what consumers watch, purchase, and listen to.

“As the media industry looks to be more inclusive of Black storytellers and brands look to grow their bottom lines and brand awareness with Black audiences, understanding who we are, where we’re connected, and how we’re changing is as important as ever. All of this work translates to the important acknowledgment of the value the Black community delivers ‘for the culture’ and beyond,” says Charlene Polite Corley, VP, Diverse Insights & Partnerships, Nielsen.

Key findings from the report include:
Black America is taking control of both the economic and media influence they hold and they are using it to invest in Black experiences, Black communities, and Black content.

• Two out of three Black viewers are more likely to watch representative content and buy from brands that advertise in representative content. 
• In 2020, Black Buying Power was at $1.57 Trillion. 
• In 2021, Black viewing power was at 1.06 Trillion.

The urgency to get representation right is real—it’s a primary factor for the massive viewing levels Black audiences deliver and the shift in Black viewing power to platforms most representative of their community and identity group. But getting representation right is increasingly nuanced.

• According to the 2020 U.S. Census, 9% of America’s rural population is Black; 16% of Black people in the U.S. report speaking a language other than English at home; people identifying as “Black in combination with another race” increased 89% in the last decade; and Afro-Latinos are 8% of today’s U.S. Black population. 
• 58% of Black audiences say there’s still not enough representation of their identity group on screen. 
• Nearly a quarter of the reported genres in Gracenote Inclusion Analytics reported zero representation of Black talent in recurring lead roles.

The preference to connect with meaningful content extends to audio with traditional radio reaching 92% of the U.S. Black population each week, and this same group of listeners averaging over an hour and a half a week of streaming audio.

• Traditional radio continues to prove the power of its reach providing the gossip, pandemic guidance, and breaking news that’s kept Black listeners connected this year, for over 21 million minutes a week. 
• Black listeners aren’t just streaming audio more than other audiences, they’re listening closely when brands reach out—averaging a 73% brand recall for podcast ads. 
• Social media’s omnipresence within Black people’s daily media routine continues as a source for nuanced content; digital influencers are an even more important touchpoint. 
• 51% of Black people 18+ spend daily time on TikTok and 29% spend daily time on Instagram than their counterparts.

Audience influence and advocacy are intertwined as Black creators and viewers across platforms unify to uproot exploitation within the media ecosystem and create a sense of urgency for social change.

• 27% of credited writers were Black on the most representative broadcast and cable dramas for Black talent in the first quarter of 2021. 
• 70% of representation isn’t just for endemic networks: seven out of the 10 top dramas represented by Black talent aired on general audience networks.

In the era of personalization and inclusion in media, Black audiences worldwide are looking to see both their collective and distinct experiences represented. 

• Black America delivers over 1 trillion viewing minutes in a single quarter but is also twice as likely to feel portrayals of their identity group on T.V. are completely inaccurate. 
• Jamaica has a culture with global influence, including places like the U.K. and 20% of the foreign-born Black population in the U.S. 
• Nigeria is the most populous country in Africa, outsources global trends like Afrobeats and “Nollywood” films, and is considered home for 18% of foreign-born Black people in the U.S.

Businesses need to demonstrate their understanding of the diverse segments within the Black community. 

• Black men have a high on-screen presence in T.V. content with a 15.5% share of screen, but 44% of Black men feel that the content that portrayed their identity group on-screen was inaccurate. 
• While the number of advertisers spending in traditional media focused on reaching African Americans has been up 16% since last summer, Black men are increasingly engaged outside of these platforms to find the forums that offer nuanced representation, connection, and solace. 
• Black women are twice as likely compared to viewers overall to seek out content where they are seen on screen. 
• Embracing the impact of historically Black colleges and universities (HBCUs) is a strong example of when brands show they understand the nuances of the Black experiences. It is the opportunity to connect with diverse communities on personal, culturally relevant levels.

Related Links

https://global.nielsen.com/global/en/

Feed Media Group Signs Deal with Reservoir To Bring Fully Licensed, Hit Music to Startups Using the Adaptr Platform
Deal Facilitates New Opportunities In Streaming Music Applications, Mobile Games, And Connected Devices

Feed Media Group, the leading business-to-business music platform, and Reservoir Media, Inc. (NASDAQ: RSVR), an award-winning independent music company, today announced a new deal that will make Reservoir’s publishing catalog of over 130,000 songs available to customers on Feed Media Group’s Adaptr platform. Adaptr provides an end-to-end solution for startups and emerging app developers looking to integrate music quickly and legally into digital experiences including fitness apps, games, and social media. The plug-and-play platform is equipped with a pre-cleared catalog of music and tools including streaming infrastructure, reporting, and royalty payments.

“We’re driven to help apps and brands create the next big thing, and make sure labels and publishers get paid every step of the way. It’s important to us to protect the catalogs of hardworking artists and songwriters while making it easy and affordable for companies to incorporate music legally. We’re thrilled to be able to offer Adaptr clients access to Reservoir’s hit music catalog,” said Feed Media Group COO Lauren Pufpaf.

We’re driven to help apps and brands create the next big thing, and make sure labels and publishers get paid.

Golnar Khosrowshahi, Reservoir Founder and CEO, added, “Building upon our extensive digital licensing practice, this agreement with Adaptr further diversifies our growth via emerging platforms. We commend Adaptr for facilitating this licensing, so startups can be music compliant from day one, and rights holders can participate in their growth.”

This deal follows Adaptr’s recently announced partnerships with Merlin, Entertainment One, Kobalt, Warner Chappell, and Warner Music Group. Reservoir’s 36,000 master recordings, including titles from Chrysalis Records and Tommy Boy Records, are already available to Adaptr customers through the aforementioned Merlin deal.

Feed Media Group launched Adaptr.com in 2021 to support startups that need popular music within their apps, with all rights cleared. Adaptr’s SDK APIs and SDKs for JavaScript, iOS, and Android enables startups to easily integrate major label music into mobile apps or web applications. Adaptr is currently available to companies that have raised less than $7.5M in funding and earn less than $4.5M in revenue.

— Revenue growth of 17.4% year-over-year in constant currency, driven by strong growth across Recorded Music, Music Publishing and Merchandising and Other.

— Recorded Music subscription and streaming revenue grew 15.2% year-over-year in constant currency.

— Adjusted EBITDA up 20.7% year-over-year driven by the revenue growth.

Universal Music Group N.V. (“UMG” or “the Company”) today announced its financial results for the third quarter ended September 30, 2021.

Sir Lucian Grainge, UMG’s Chairman and CEO, said, “Our operational and financial performance this quarter – our first as an independent, publicly traded company – demonstrates both why UMG is the world’s most successful music company, as well as how our commitment to artists’ career development and fostering innovation promotes growth across the music ecosystem.”

“Our results this quarter demonstrate the continued strength of our artist roster and catalogue, the increasingly diversified revenue streams of our business, and our ability to deliver growth for our shareholders,” said Boyd Muir, EVP, CFO and President of Operations of Universal Music Group. 

Revenue for the third quarter of 2021 was €2,153 million, up 16.1% compared to the third quarter of 2020, and up 17.4% in constant currency.  UMG’s Recorded Music, Music Publishing and Merchandising and Other segments all contributed to the revenue growth, as discussed further below.

EBITDA for the quarter grew 12.1% year-over-year to €426 million, driven by the revenue growth.  EBITDA margin was 19.8%, compared to 20.5% in the third quarter of 2020.  EBITDA and EBITDA margin were impacted by certain one-time direct listing and share-based compensation related costs, which amounted to €35 million and included professional fees, listing fees and direct listing related share-based compensation expense.  Excluding these items, Adjusted EBITDA for the quarter was €461 million, up 20.7% year-over-year driven by revenue growth, and Adjusted EBITDA margin expanded 0.8 percentage points to 21.4% due to operating leverage (See “Appendix” for reconciliation of Adjusted EBITDA).

Recorded Music revenue for the third quarter of 2021 was €1,711 million, up 15.5% compared to the third quarter of 2020, and up 16.9% in constant currency.  Subscription and streaming revenue grew 14.0%, or 15.2% in constant currency, with strong growth in both subscription and ad-supported streaming revenues.  Ad-supported streaming was particularly strong, due to the ongoing improvement in ad-based monetization and new and enhanced deals in social media.  Physical revenue grew 8.9%, or 11.6% in constant currency, driven by strong vinyl demand as well as growth in direct-to-consumer sales.  Other digital revenue fell 4.7%, or 3.5% in constant currency, as the global decline in downloads continues.  License and other revenue improved 49.3%, both as reported and in constant currency, as a result of improvements in broadcast and neighboring rights collections, audio-visual production income and synchronization, live and brand deals.  Top sellers for the quarter included new releases from Billie Eilish, King & Prince and Drake, as well as continued sales of BTS and Olivia Rodrigo.  Top sellers in the prior-year quarter included BTS, Taylor Swift, King & Prince, Pop Smoke and Juice WRLD.

Music Publishing revenue amounted to €363 million in the third quarter of 2021, up 19.8% year-over-year, or 21.4% in constant currency.  Revenues benefited from the continued growth in subscription and streaming, the timing of certain society distributions and from an improvement in synchronization. While performance revenue experienced the delayed impact of last year’s COVID-related slowdown, this was more than offset by revenue from catalogue acquisitions.

Merchandising and Other revenue grew to €84 million, up 13.5%, both as reported and in constant currency, as retail revenues grew and touring-related merchandising revenue began to rebound.

Conference Call Details

The Company will host a conference call to discuss these results today at 6:15PM CEST. A link to the live audio webcast will be available on investors.universalmusic.com and a link to the replay will be available after the call.

While listeners may use the webcast, a dial-in telephone number is required for investors and analysts to ask questions.  Investors and analysts interested in asking questions can pre-register for a dial-in line at investors.universalmusic.comunder the “Financial Reports” tab.

Cautionary Notice

This press release is published by Universal Music Group N.V. and contains inside information within the meaning of article 7 (1) of Regulation (EU) No 596/2014 (Market Abuse Regulation).

Forward-Looking Statements. This press release contains forward-looking statements with respect to UMG’s financial condition, results of operations, business, strategy, plans and profit forecast. You can identify these forward-looking statements by the use of words such as ‘profit forecast’, ‘expect’, ‘estimate’, ‘project’, ‘anticipate’, ‘should’, ‘intend’, ‘plan’, ‘probability’, ‘risk’, ‘target’, ‘goal’, ‘objective’, ‘will’, ‘endeavour’, ‘optimistic’, ‘prospects’ and similar expressions or variations on such expressions. Although UMG believes that such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are related to factors that are outside our control, including, but not limited to, the macro-economic, legislative and regulatory environment of the Company, our ability to compete successfully and to identify and sign successful recording artists, failure of streaming and subscription adoption or revenue to grow or to grow less rapidly than anticipated, our reliance on digital service providers, our ability to execute our business strategy, technological advancements, the global nature of our operations, our ability to attract and retain key personnel, our ability to protect our intellectual property and against piracy, regulations on our revenues which may limit profitability, changes in laws and regulations and the other risks described in our prospectus dated September 14, 2021, which is available on our website (www.universalmusic.com). Accordingly, we caution readers against placing undue reliance on such forward-looking statements. These forward-looking statements are made as of the date of this press release. UMG disclaims any intention or obligation to provide, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Key Performance Indicators.  This press release includes certain key performance indicators (KPIs) which are not defined in the International Financial Reporting Standards issued by the International Accounting Standards Board as endorsed by the EU. The descriptions of these KPIs are included in our prospectus, dated September 14, 2021.

ABOUT UNIVERSAL MUSIC GROUP

At Universal Music Group (EURONEXT: UMG), we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation and entrepreneurship, UMG fosters the development of services, platforms and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information on Universal Music Group N.V. visit www.universalmusic.com.

Appendix

Related Links

http://www.universalmusic.com

SOURCE Universal Music Group

SiriusXM Reports Third Quarter 2021 Results

– Third Quarter Revenue of $2.20 Billion; an Increase of 9% From Prior Year Period

– Third Quarter Net Income of $343 Million; Diluted EPS of $0.08

– Record Quarterly Adjusted EBITDA of $719 Million, Up 9% From Prior Year Period

– SiriusXM Self-Pay Net Subscriber Additions of 616,000 in Third Quarter and 1.1 Million Year to Date

– Company Increases 2021 Subscriber and Financial Guidance

– SiriusXM Recently Increased Quarterly Cash Dividend by 50%

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– SiriusXM today announced third quarter 2021 operating and financial results, including revenue of $2.20 billion in the quarter, an increase of 9% compared to the prior year period.  The company recorded net income of $343 million in the third quarter of 2021, compared to $272 million in the prior year period.  Net income per diluted common share was $0.08 in the third quarter 2021, compared to $0.06 in the prior year period.

Adjusted EBITDA in the third quarter was $719 million, up 9% from $661 million in the prior year period. 

“By adding a record 616,000 net new SiriusXM self-pay subscribers in the third quarter, we attained our prior full-year guidance of approximately 1.1 million net additions in just nine months.  We are increasing all of our financial guidance for 2021 and expect to add more than 1.1 million net new self-pay SiriusXM subscribers this year, making 2021 our best for self-pay subscriber growth since 2018.  During the quarter, we saw continued low monthly churn and outstanding ARPU performance in the SiriusXM business, and we are also making important progress driving advertising growth at Pandora,” said Jennifer Witz, Chief Executive Officer of SiriusXM.

“We continue leaning into new investments in unique content, improved digital experiences in- and out-of-car, and effective marketing that tells this story.  We recently launched new shows, podcasts, and channels across our platforms with marquee talent and brands, including Megyn Kelly, Seth Rogen, and TikTok, showcasing how SiriusXM works with creators to inspire conversations and moments that are appealing across generations and lifestyles.  SiriusXM recently signed new deals with NFL legends Tom Brady and Larry Fitzgerald and launched Pandora’s biggest-ever Artist Takeover with U2.  Our Small Stage Series has brought back thrilling live performances, including Brandi Carlile, Coldplay, J. Cole, and – up next, H.E.R.  We look forward to achieving a strong finish to the year and continued value for our stockholders by delivering the best content in audio entertainment,” added Witz.

2021 GUIDANCE

The Company increased its full-year 2021 guidance for self-pay net subscriber additions, revenue, adjusted EBITDA, and free cash flow:

• SiriusXM self-pay net subscriber additions of over 1.1 million,
• Total revenue of approximately $8.65 billion,
• Adjusted EBITDA of approximately $2.75 billion, and
• Free cash flow of over $1.8 billion.

ADDITIONAL OPERATIONAL AND FINANCIAL UPDATE

“SiriusXM’s third quarter results were strong across the board and support the new, higher financial guidance we have provided today.  We expect to see continued net self-pay subscriber growth in the fourth quarter, but the third quarter’s lower auto sales – primarily driven by supply issues – will reduce conversion opportunities beginning in the fourth quarter,” said Sean Sullivan, Chief Financial Officer of SiriusXM.

Sullivan continued, “This summer, we were able to opportunistically raise additional debt capital on very attractive terms.  In total, we issued $4.5 billion of new five-, seven- and ten-year unsecured senior notes at an average coupon of about 3.75%, and we now have no major debt maturities through August 2026.  We also extended our $1.75 billioncredit facility to 2026, and this facility remains undrawn and available at the end of the third quarter.”

“SiriusXM returned $383 million to our stockholders in the third quarter, including share repurchases of $324 millionand dividends of $59 million.  Earlier this week, we were pleased to announce a 50% increase to our quarterly dividend beginning in November, which is supported by our strong operating performance and our expectation of the business’ continued healthy cash generation.  At the end of the third quarter, SiriusXM’s net debt-to-adjusted EBITDA ratio was 3.1x, and our healthy balance sheet and ample cash generation give us tremendous flexibility to increase growth investments in our business, continue returning capital to stockholders, and pursue attractive external investments and acquisition opportunities that may arise,” added Sullivan.

THIRD QUARTER 2021 HIGHLIGHTS

SiriusXM operates two complementary audio entertainment businesses — SiriusXM Pandora.  Further information regarding these two segments will be contained in the company’s quarterly report on Form 10-Q for the quarter ended September 30, 2021.  The financial and operating highlights below exclude the impact of legal settlements and reserves and share-based payment expense.

SIRIUSXM SEGMENT

• Self-Pay Subscribers Reach a Record-High 32.0 Million. SiriusXM added 616,000 net new self-pay subscribers in the third quarter, a 264% increase from the 169,000 added in the third quarter of 2020. Paid promotional subscribers decreased by 828,000 in the third quarter. Continuing impacts of new vehicle trial structures with certain automakers as well as lower vehicle shipments due to reported semiconductor supply shortages contributed to negative paid promotional net additions during the quarter. Total subscribers at the end of the third quarter were 34.3 million. The total SiriusXM funnel of trial subscribers stood at approximately 7.5 million at the end of the third quarter, down from approximately 9.1 million at the end of the second quarter 2021. Self-pay monthly churn for the third quarter improved approximately 11 basis points to 1.5% from 1.7% in the third quarter of 2020.
• SiriusXM Revenue Increased 5% to $1.66 Billion. Third quarter 2021 revenue grew 5% to $1.66 billion compared to the third quarter of 2020. This growth was driven by a 5% increase in SiriusXM’s average revenue per user (ARPU) to $14.84 and a 5% increase in SiriusXM self-pay subscribers, partially offset by the effects of a lower number of paid trial subscribers.
• Gross Profit Increased 4% to $1.02 Billion and Gross Margin Was Stable. Total cost of services at SiriusXM increased by 6% to $645 million in the third quarter of 2021 compared to the third quarter of 2020. Gross profit at SiriusXM totaled $1,015 million, an increase of 4% compared to the third quarter of 2020, producing a gross margin of 61%, a 1 percentage point decrease from the prior-year period.
• Growing Premium Content. SiriusXM continued to create multiple new and limited-time streaming channels, including channels for Bon Jovi, Grateful Dead, Halsey, Metallica, and SoundCloud Radio. SiriusXM also launched special streaming channels to celebrate women in Pop, Hip Hop, and Rock, and the company created programming to celebrate the careers of comedy greats Joan Rivers and Lucille Ball. During the quarter, SiriusXM completed an investment and programming agreement with Audio Up, the podcast production studio, which is expected to create a variety of podcasts for SiriusXM’s platforms and collaborate on new audio entertainment concepts.

PANDORA SEGMENT

• Advertising Revenue Increased 32% to $404 Million. Third quarter ad revenue at Pandora, which includes off-platform results such as the company’s AdsWizz business, increased by 32% year-over-year to $404 million. Ad revenue was boosted by strong monetization of $109 per thousand hours at Pandora, compared to $84 from the prior year period. Ad revenue also benefited from the acquisition of Stitcher in the fourth quarter of 2020.
• Growing Off-Platform and Podcasting Revenue. In the third quarter of 2021, Stitcher and the company’s off-platform advertising businesses recorded $89 million in revenue. Off-platform revenue, excluding Stitcher, increased approximately $18 million or 41% compared to the third quarter of 2020. Stitcher recently announced podcasting an agreement covering the Audiochuck network and its chart-topping show Crime Junkie, as well as agreements with New Rory & MAL, For Colored Nerds, The Bellas, and Last Podcast on the Left.
• Total Advertising-Supported Listener Hours of 2.89 Billion. Monthly Active Users (MAUs) at Pandora were 52.6 million in the third quarter of 2021, down from 58.6 million in the prior year period. Total ad-supported listener hours were 2.89 billion in the period, down from 3.12 billion in the third quarter of 2020. Average monthly hours per ad-supported active user were 20.1 in the third quarter of 2021, up from 19.5 in the third quarter of 2020.
• Self-Pay Subscribers Decline Modestly. Self-pay subscribers to the Pandora Plus and Pandora Premium services decreased by 59,000 in the third quarter 2021 to end the period with 6.5 million self-pay subscribers to those services.
• Gross Profit Grew 22%. Subscriber revenue increased by 2%, advertising revenue increased by 32% and total cost of services increased by 24% during the third quarter of 2021. This resulted in gross profit at Pandora of $197 million, up 22% over the third quarter of 2020, and produced a gross margin for the quarter of 37%, in-line with the prior year period.
• New Collaborations and Expansion of Diverse Content. During the third quarter of 2021, Pandora launched eight new “Billionaires” stations across genres that feature music from artists who have hit one billion streams on Pandora and expects to continue to update these stations as more artists hit that threshold. Pandora also launched a suite of new stations collectively called Pandora’s Happy Place, in response to increased demand for feel-good music amidst stressful times. And in collaboration with U2, Pandora launched its biggest-ever Artist Takeover featuring special station Modes based on the group’s first three albums, with band members sharing exclusive behind-the-scenes stories and guiding listeners to other classic songs that influenced each album.

Subscriber acquisition costs decreased by 35% to $71 million in the third quarter of 2021 compared to the prior year period.  Lower costs resulting from the reported semiconductor supply shortages and the associated lower automotive production in the third quarter of 2021 resulted in subscriber acquisition cost savings.  Subscriber acquisition costs also benefited from lower subsidies from contract improvements with certain automakers.  Sales and marketing costs increased by 24% to $254 million in the third quarter of 2021 compared to the prior year period, boosted by increased performance marketing and a new nationwide ad campaign promoting SiriusXM.  Engineering, design and development costs rose 11% to $59 million, and general and administrative expenses decreased by 3% to $109 million in the third quarter of 2021. 

Free cash flow was $588 million, up approximately 63% from the prior year period, primarily due to insurance recoveries associated with the SXM-7 satellite failure and the growth in cash generated by operations, partially offset by a decrease in deferred revenue driven by a shift to shorter term self-pay and trial subscriptions as well as free trials at certain automakers.